The following risk factor updates the risk factor included in Part II, Item 1A.
−Removed: Risk Factors in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2020, filed by the Company on April 30, 2020.
+Added: Risk Factors in the Company’s Quarterly Report on Form 10-Q for the six months ended June 30, 2020 filed by the Company on July 30, 2020.
Except as set forth below, there have been no material changes with regard to the risk factors previously disclosed in the 2019 Form 10-K.
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These measures and the pandemic have caused a significant economic downturn in the United States and globally, resulted in increased unemployment and underemployment levels, and adversely impacted consumer confidence and spending.
−Removed: This pandemic has also led to significant disruption and volatility in financial and capital markets.
+Added: This pandemic has also led to disruption and volatility in financial and capital markets.
Amid these efforts and occurrences, diagnosed cases of COVID-19 have continued to grow, particularly in the United States, which has caused some governmental authorities to reinstate previously relaxed restrictions on business and other activities.
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Additionally, adverse conditions related to the pandemic have caused, and could continue to cause, certain of our customers to be unable to pay for our products and services in a timely and fulsome manner, or unable to pay at all, which has had, and will likely continue to have, an adverse impact on our financial results.
−Removed: For example, we experienced a decrease in cash receipts from customers in the second quarter of 2020 compared to the same period of the previous year and an increase in DSO from the first quarter of 2020 to the second quarter.
−Removed: To the extent these trends continue, or our customers are unable to pay due to bankruptcy or the deterioration of their business as the result of COVID-19, our bad debt may continue to increase and future revenue generating opportunities with those customers may be limited.
+Added: To the extent these trends continue, or our customers are unable to pay due to the deterioration of their businesses as the result of COVID-19, our bad debt may continue to increase and future revenue generating opportunities with those customers may be limited.
Conditions related to the pandemic may also adversely impact the ability or willingness of our customers to renew their contracts with us (or to renew contracts on comparable terms) and have adversely impacted the willingness of some customers to expand the quantity and type of solutions they purchase from us.
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Many of our customers are not currently allowing vendors, including ourselves, on their premises, which has reduced, and will likely continue to reduce, the ability of our sales team to make sales they otherwise would likely make but for the impact of COVID-19.
−Removed: opportunities generated from in-person marketing initiatives, such as tradeshows, have also been negatively impacted due to the cancellation of such in-person events, and this has led to, and will likely continue leading to, lost or delayed sales opportunities.
+Added: Our sales opportunities generated from in-person marketing initiatives, such as tradeshows, have also been negatively impacted due to the cancellation of such in-person events, and this has led to, and will likely continue to lead to, lost or delayed sales opportunities.
Additionally, we do not recognize revenue until a software product is implemented and “live” for a customer to use.
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To the extent COVID-19 results in business disruption or adverse impacts to our partners, such disruptions and adverse impacts could adversely impact our business as well.
−Removed: At the time of filing, due to COVID-19 our entire workforce is continuing to work remotely from home, even if and to the extent that phased re-opening orders provided by local and state governments would allow for a limited return to office work.
+Added: Due to COVID-19, our entire workforce is continuing to work remotely from home, even if and to the extent that phased re-opening orders provided by local and state governments would allow for a limited return to office work.
While we have not observed a negative disruption to productivity to date, operating on a prolonged basis as a remote workforce could result in decreases in productivity, increased security risks, impair our ability to manage our business, and harm our ability to attract, retain, and onboard employees.
−Removed: There continue to be significant uncertainties associated with the COVID-19 pandemic, including with respect to the severity and duration of the pandemic, the timing and availability of medical treatments and vaccines with respect to COVID-19, actions that may be taken by governmental authorities and private businesses to mitigate against the impact of the pandemic, and the ongoing impact of COVID-19 on economic activity and unemployment and underemployment levels.
+Added: There continue to be significant uncertainties associated with the COVID-19 pandemic, including with respect to the severity and duration of the pandemic, the timing and availability of medical treatments and vaccines with respect to COVID-19, actions that may be taken by governmental authorities and private businesses to mitigate against the impact of the pandemic,
+Added: and the ongoing impact of COVID-19 on economic activity and unemployment and underemployment levels.
Moreover, COVID-19 developments continue to evolve quickly, and additional developments may occur which we are unable to predict.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.